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Goodman Property Trust GMT Bond Issuer Limited
Goodman
Property Trust Results highlights 2 Goodman Other information
Interim Report Property Trust
2021 Financial summary 3 Financial Statements 9 – 30 Investor relations 40
GMT Bond
GMT Bond Glossary 42
Issuer Limited Chairman’s and
Interim Report
This document comprises the Interim Chief Executive Issuer Limited Corporate directory 43
2021
Reports of Goodman Property Trust Officer’s report 4–8 Financial Statements 31 – 38
and GMT Bond Issuer Limited for the
six months ended 30 September 2020.
Goodman Property Trust is
New Zealand’s largest listed
property investor. It is a high-quality
Front cover image:
Gateway
business built around a substantial
warehouses
at Highbrook
portfolio, a wide customer base and
Business Park,
East Tamaki. a proven development capability.
1
Goodman
Property Trust
Interim Report
2021
GMT Bond
Issuer Limited
Interim Report
2021
Highbrook
An investment strategy focused
Business Park,
East Tamaki
on the Auckland industrial market
Progressively
developed since
2004 this world class
provides customers with high-quality estate provides over
450,000 sqm of high-
business premises, close to major
quality warehouse
and logistics space.
Occupied by around
transport networks in New Zealand’s 115 leading customers
it supports a daily
largest consumer market. workforce of more
than 5,000.
2
Goodman
Property Trust
Interim Report
2021
GMT Bond
Issuer Limited
Interim Report
2021
$186.4 million
Profit before tax
21.5%
Loan to value ratio
$140.2 million
Portfolio revaluation
$87.7 million
Projects under development
Savill Link,
Ōtāhuhu
Located on the former
railway workshop
$3.3 billion
Property portfolio
99.7%
Portfolio occupancy
site in Ōtāhuhu, the
estate provides over
135,000 sqm of
modern warehouse
facilities predominantly
leased to larger
logistics operators.
3
Goodman
Property Trust
Interim Report
2021
GMT Bond
Issuer Limited
30 September 30 September % Interim Report
2020 2019 change 2021
Profit before tax ($m) 186.4 236.4 (21.15)
Profit after tax ($m) 176.3 224.3 (21.40)
Movement in fair value of investment property ($m) 140.2 172.4 (18.68)
Operating earnings before tax ($m) (1) 56.0 53.7 4.28
Operating earnings after tax ($m) (2)
46.4 44.7 3.80
Cash earnings per unit (cpu) 3 .1 1 3.15 (1.27)
Cash distribution per unit (cpu) 2.650 3.325 (20.30)
Assets for loan to value calculation ($m) (3)
3,276.7 2,960.9 10.67
Borrowings for loan to value calculation ($m) (3) 704.9 531.3 32.67
Loan to value ratio (%) (3) 21.5 17.9 20.1 1
GMT – S&P Global Ratings credit rating BBB BBB –
Goodman+Bonds – S&P Global Ratings credit rating BBB+ BBB+ –
(1)
Refer to GMT’s Profit or Loss statement for further information.
(2)
Refer to note 3.1 of GMT’s financial statements for further information.
(3)
Refer to note 2.6 of GMT’s financial statements for further information.
Operating earnings Cash earnings
Operating earnings is a non-GAAP financial Cash earnings is a non-GAAP financial measure that
measure included to provide an assessment of assesses underlying cashflows, on a per unit basis,
the performance of GMT’s principal operating after adjusting for certain items. The calculation is
activities. Calculation of operating earnings are set out in GMT’s 2021 Interim Results Presentation,
as set out in GMT’s Profit or Loss statement. released on 23 November 2020.
Loan to value ratio
Loan to value ratio is a non-GAAP financial measure
used to assess the strength of GMT’s balance
sheet. The calculation is set out in note 2.6 of
GMT’s financial statements.
4
Goodman
Property Trust
Interim Report
2021
GMT Bond
Issuer Limited
Interim Report
Adapting to
2021
today’s challenges
GMT has delivered a strong operating
performance over the first six months of
the new financial year, quickly adapting
to the commercial challenges arising
from the COVID-19 pandemic.
While economic activity has been constrained, the
focus and quality of the Trust’s $3.3 billion Auckland
property portfolio and the strength of its customer
relationships have continued to support consistent
operating results.
Low gearing has also allowed the Trust to remain
active and take advantage of new opportunities.
Strategic acquisitions and further development
progress together with recent capital management
and governance initiatives have maintained the
positive momentum in the business.
With the risks of a widespread COVID-19 outbreak
being contained to date, the economic outlook for
New Zealand has improved since 31 March 2020.
Business confidence is recovering, and the continued
execution of an investment strategy focused on
urban logistics means the Trust is benefitting from
the growing demand for distribution facilities close to
consumers.
The pandemic is accelerating the growth of
John Dakin e-commerce with many businesses responding
Chief Executive
Officer and to the opportunities of an online marketplace.
Executive Director It’s another positive demand driver for well-located
Keith Smith warehouse and logistics property in the country’s
Chairman and
Independent largest consumer market.
Director
5
Chairman’s and Chief Executive Officer’s report (continued) Goodman
Property Trust
Interim Report
2021
GMT Bond
Issuer Limited
Interim Report
2021
Financial results With consistent operating results and a more stable
A comprehensive portfolio valuation contributed economic outlook the Board has reviewed its
$140.2 million of fair value gains to GMT’s interim earnings and distribution guidance for the Trust.
statutory profit of $186.4 million, before tax. While Cash earnings of at least 6.3 cents per unit are now
still substantial, it is lower than the $172.4 million expected for the year, an increase of 0.1 cents per
of fair value gains recorded in the previous unit from earlier guidance.
corresponding period.
Distribution guidance remains unchanged, with full
The 4.4% revaluation was driven by increased year cash distributions of at least 5.3 cents per unit
investor demand for prime industrial assets, with being reaffirmed.
record low interest rates directly contributing to
the strengthening in investment yields over the last The guidance reflects the Board's new distribution
six months. policy for the Trust which includes a revised payout
ratio of between 80% and 90% of cash earnings,
These fair value gains were also the main driver on average over time. The revision better aligns the
of the 5.6% increase in GMT’s net tangible asset distributions paid to Unitholders with the underlying
backing, which increased from 172.7 cents per cashflows from the Trust’s investment portfolio,
unit at 31 March 2020 to 182.4 cents per unit at contributing to sustainable long-term growth.
30 September 2020.
Portfolio performance
High occupancy levels and ongoing leasing success
together with the additional revenue from completed The COVID-19 pandemic has highlighted the
developments and new acquisitions contributed important role a secure and efficient supply chain
to the 4.3% increase in operating earnings, to plays in the orderly functioning of a modern
$56.0 million before tax. economy. Well-located warehouse and logistics
facilities are an essential link in these networks.
With additional units on issue following last year’s
successful capital raising, operating earnings on a
The urban logistics market has continued to be the best performing of
per unit basis were 1.9% lower at 4.03 cents per unit.
all the commercial property sectors. Businesses have shown resilience,
Cash earnings of 3.11 cents per unit were materially with most distribution and logistics specialists successfully managing
in-line with the previous corresponding period
through the disruption of the COVID-19 Alert Level trading restrictions.
and distributions of 2.65 cents per unit have been Digital economy
declared for the first six months. GMT’s own leasing results reflect the stable The growth in
online retailing is
occupier market with over 94,000 sqm of space, driving demand
for warehouse and
representing 8.8% of the portfolio, secured logistics space close
on new or revised terms over the last six months. to consumers.
6
Goodman Chairman’s and Chief Executive Officer’s report (continued)
Property Trust
Interim Report
2021
GMT Bond
Issuer Limited
Interim Report
2021
The table below summarises the key metrics of the
investment portfolio. At 30 September 2020 the
portfolio had an occupancy rate of almost 100% and a There is a further $87.7 million of work in progress,
weighted average lease term of more than five years. including the recommenced 9,000 sqm warehouse
project at M20 Business Park in Wiri. The
Value Rentable area Occupancy Weighted average development which has a total cost of $25 million,
($ million) (sqm) (%) lease term (years)
was one of the two build-to-lease projects that
Core portfolio 2,774.5 895,511 99.7 5.8 were paused earlier in the year while the impacts of
Value-add estates 443.6 181,189 99.3 2.6 COVID-19 were being assessed. The resumption of
the project reflects current customer demand and
Total investment portfolio 3,218.1 1,076,700 99.7 5.4
expectations of increasing economic activity.
While the majority of GMT’s customers have Development programme Enquiry levels for tailored development
adapted to the new operating environment a small With minimal disruption to its construction solutions remain strong, with few options
number, typically retail and hospitality businesses, timetable the Trust has continued to progress available for customers as a result of low
have experienced significant hardship as a result
New Zealand Post
its development programme, completing two vacancy and limited new supply.
of COVID-19. As a long-term business partner, the
The post and parcel projects during the period. The developments,
Trust has supported its most vulnerable customers.
delivery specialist which have a combined value of $46.25 million, A number of design-build proposals are well
is GMT's largest
customer occupying This assistance has included rent abatements, have added 12,900 sqm of high-quality space progressed and expectations are that new
over 70,000 sqm to the portfolio, generating over $2.3 million of
of space, across
rent deferrals, rent freezes, lease restructures and customer commitments will be secured as
five facilities. marketing support. annual rental income. business confidence returns.
7
Chairman’s and Chief Executive Officer’s report (continued) Goodman
Property Trust
Interim Report
2021
GMT Bond
Issuer Limited
Interim Report
2021
Funding growth
A well-capitalised balance sheet has enabled
GMT to take advantage of these new opportunities.
With a loan to value ratio of just 21.5% and only
partially drawn debt facilities the Trust retains
around $400 million of funding capacity for
future investment.
It’s a strong position that has only been achieved
through careful financial management and the
disciplined execution of GMT’s investment strategy.
The issue of $200 million of fixed interest rate bonds
to New Zealand wholesale investors in September
2020 was a continuation of this prudent approach.
The highly successful issue included two tranches:
1) $150 million of 10-year bonds paying 2.559%
per annum, and
Strategic investments 2) $50 million of eight-year bonds paying 2.262%
per annum.
With just 8.9 hectares of greenfield land remaining
in the portfolio, new investment opportunities that Achieved at competitive margins the new issue adds
provide a future development pipeline are being further tenor and diversity to the Trust’s debt book
targeted. which now includes bank borrowings, listed retail
bonds, wholesale bonds and US Private Placement
The recent acquisition of various properties
debt notes.
neighbouring the Trust’s Savill Link and
Mt Wellington industrial estates are examples of GMT’s bank facilities were also refinanced following
this strategy. With a combined purchase price of the interim balance date, with the first bank debt Savill Link,
$83 million the acquisitions have a total site area expiry extended out to November 2022. The Ōtāhuhu
The acquisition
of 14.5 hectares. weighted term to expiry across all the Trust’s drawn of neighbouring
debt is now 5.1 years. properties, including
Currently leased, with existing improvements the MetroBox
container storage
providing steady holding income, the new sites offer facility, have
a range of longer-term redevelopment options that created longer term
redevelopment
will contribute to GMT’s future growth. options.
8
Goodman Chairman’s and Chief Executive Officer’s report (continued)
Property Trust
Interim Report
2021
GMT Bond
Issuer Limited
Interim Report
2021
Corporate governance Outlook
While the main focus has been on the operational GMT has shown that it is a robust and resilient A high-quality portfolio focused on
performance of the Trust, the Board has also property business, able to perform through urban logistics ensures the Trust
continued to progress its governance agenda. economic disruptions and market cycles.
Included within this programme is a plan for Director
will continue to benefit from the
renewal, with a refreshed Board expected to
The Trust has adapted to the challenges of structural trends that are driving
COVID-19 and has continued to deliver consistent demand for distribution facilities
oversee the next stage of GMT’s growth.
operating results. Customer demand has remained
Laurissa Cooney has been appointed as an steady, portfolio occupancy has been maintained
close to consumers.
Independent Director of the Manager and is the first and year-to-date rental cashflows are in-line
appointment in a process that is expected to take with expectations.
two to three years. Laurissa’s technical expertise
While the economic outlook is still uncertain, the
together with her wider professional and community
Highbrook quality and scale of the portfolio, together with the
Business Park, experience augments the skills of existing directors
East Tamaki low level of gearing and focused investment strategy,
and broadens the business perspective.
Overlooking the gives the Board and management team confidence
Tamaki River the Peter Simmonds will be retiring from the Board that the Trust remains well positioned for sustainable
estate adjoins
over 40 hectares on 31 December 2020 after 10 years of valued long-term growth. John Dakin Keith Smith
of parkland and
esplanade reserve
contribution as an Independent Director and Chair Chief Executive Officer Chairman and
areas. of the Audit Committee. and Executive Director Independent Director9
Goodman
Property Trust
Interim Report
2021
Interim Financial
Statements
For the six months ended 30 September 2020 of Goodman
Property Trust
The Board of Goodman (NZ) Limited, the Manager of
Goodman Property Trust, authorised these financial
statements for issue on 20 November 2020.
For and on behalf of the Board:
Keith Smith Peter Simmonds
Chairman Chairman, Audit Committee
Contents
Profit or loss 10
Balance sheet 11
Cash flows 12
Changes in equity 13
General information 14
Notes to the Financial Statements
1. Investment property 15
2. Borrowings 19
3. Earnings per unit and net tangible assets 23
4. Derivative financial instruments 25
5. Tax 26
6. Related party disclosures 27
7. Commitments and contingencies 29
8. Financial risk management 29
9. Operating segments 29
El Kobar Units,
Independent auditor’s review report 30 Highbrook
Business Park10
Goodman Profit or loss
Property Trust For the six months ended 30 September 2020
Interim Report
2021
Interim Financial 6 months 6 months
Statements $ million Note 30 Sep 20 30 Sep 19
of Goodman
Property Trust Property income 1.1 87.3 84.1
Property expenses (13.0) (12.8)
Net property income 74.3 71.3
Interest cost 2.1 (11.0) (11.5)
Interest income 2.1 – 0.3
Net interest cost (11.0) (11.2)
Administrative expenses (1.3) (1.2)
Manager’s base fee 6 (6.0) (5.2)
Operating earnings before other income / (expenses) and tax 56.0 53.7
Other income / (expenses)
Movement in fair value of investment property 1.5 140.2 172.4
Disposal of investment property – 0.3
Movement in fair value of financial instruments 4.1 (9.8) 10.0
Profit before tax 186.4 236.4
Tax
Current tax on operating earnings 5.1 (9.6) (9.0)
Current tax on non-operating earnings 5.1 2.0 0.1
Deferred tax 5.1 (2.5) (3.2)
Total tax (10.1) (12.1)
Profit after tax attributable to unitholders 176.3 224.3
There are no items of other comprehensive income, therefore profit after tax attributable to unitholders equals total comprehensive income
attributable to unitholders.
6 months 6 months
Cents Note 30 Sep 20 30 Sep 19
Basic and diluted earnings per unit after tax 3.1 12.67 17.1911
Balance sheet Goodman
As at 30 September 2020 Property Trust
Interim Report
2021
$ million Note 30 Sep 20 31 Mar 20 Interim Financial
Statements
Non-current assets of Goodman
Property Trust
Investment property 1.3 3,342.3 3,074.0
Other assets – 0.7
Derivative financial instruments 4.2 51.7 75.1
Total non-current assets 3,394.0 3,149.8
Current assets
Debtors and other assets 11.0 8.0
Derivative financial instruments 4.2 0.5 1.6
Cash 52.7 9.0
Total current assets 64.2 18.6
Total assets 3,458.2 3,168.4
Non-current liabilities
Borrowings 2.2 678.4 523.5
Lease liabilities 2.5 62.4 60.1
Derivative financial instruments 4.2 13.7 15.6
Deferred tax liabilities 34.4 31.9
Total non-current liabilities 788.9 631.1
Current liabilities
Borrowings 2.2 100.0 100.0
Creditors and other liabilities 27.9 29.6
Lease liabilities 2.5 3.2 3.2
Current tax payable 1.3 2.4
Total current liabilities 132.4 135.2
Total liabilities 921.3 766.3
Net assets 2,536.9 2,402.1
Total equity 2,536.9 2,402.112
Goodman Cash flows
Property Trust For the six months ended 30 September 2020
Interim Report
2021
Interim Financial 6 months 6 months
Statements $ million 30 Sep 20 30 Sep 19
of Goodman
Property Trust Cash flows from operating activities
Property income received 91.6 86.8
Property expenses paid (22.3) (20.0)
Interest costs paid on borrowings (9.5) (11.1)
Interest costs paid on lease liabilities (1.6) (1.6)
Administrative expenses paid (1.2) (1.3)
Manager’s base fee paid (6.0) (9.9)
Manager’s performance fee paid (11.4) (8.6)
Net GST paid (0.2) (0.1)
Tax paid (8.7) (9.4)
Net cash flows arising from operating activities 30.7 24.8
Cash flows from investing activities
Payments for the acquisition of investment properties (82.6) (105.4)
Proceeds from the sale of investment properties – 47.5
Capital expenditure payments for investment properties (38.6) (57.0)
Holding costs capitalised to investment properties (3.5) (5.1)
Net cash flows arising from investing activities (124.7) (120.0)
Cash flows from financing activities
Proceeds from borrowings 256.0 137.0
Repayments of borrowings (81.0) (149.0)
Proceeds from the issue of units 11.4 161.3
Distributions paid to unitholders (41.5) (43.3)
Settlement of derivative financial instruments (7.2) –
Net cash flows arising from financing activities 137.7 106.0
Net movement in cash 43.7 10.8
Cash at the beginning of the period 9.0 3.1
Cash at the end of the period 52.7 13.913
Changes in equity Goodman
For the six months ended 30 September 2020 Property Trust
Interim Report
2021
Unit based Interim Financial
Distribution Number payments Retained Statements
per unit of units Units reserve earnings Total of Goodman
Note (cents) (million) ($ million) ($ million) ($ million) ($ million) Property Trust
As at 1 April 2019 1,294.9 1,419.1 13.9 613.2 2,046.2
Profit after tax – – 261.9 261.9
Distributions paid to unitholders 6.65 – – (89.4) (89.4)
Manager’s performance fee – earned 6 – 11.4 – 11.4
Issue of units
Manager’s base fee – settled 6 2.9 5.3 (5.3) – –
Manager’s performance fee – settled 4.7 8.6 (8.6) – –
Placement – September 2019 71.4 150.0 – – 150.0
Retail Unit Offer – October 2019 11.9 25.0 – – 25.0
Issue costs incurred – (3.0) – – (3.0)
As at 31 March 2020 1,385.8 1,605.0 11.4 785.7 2,402.1
Profit after tax – – 176.3 176.3
Distributions paid to unitholders 2.99 – – (41.5) (41.5)
Issue of units
Manager’s performance fee – settled 6 5.4 11.4 (11.4) – –
As at 30 September 2020 1,391.2 1,616.4 – 920.5 2,536.9
There are no items of other comprehensive income to include within changes in equity, therefore profit after tax equals total comprehensive
income.
Subsequent event
On 20 November 2020 a cash distribution of 1.325 cents per unit with 0.243842 cents per unit of imputation credits attached was declared. The record date for
the distribution is 7 December 2020 and payment will be made on 17 December 2020.14
Goodman General information
Property Trust For the six months ended 30 September 2020
Interim Report
2021
Interim Financial Reporting entity The accounting policies and methods of computation used in the
Statements
Goodman Property Trust (“GMT” or the “Trust”) is a unit trust preparation of these interim financial statements are consistent
of Goodman
Property Trust established on 23 April 1999 under the Unit Trusts Act 1960. GMT with those used in the financial statements for the year ended
is domiciled in New Zealand. The Manager of the Trust is Goodman 31 March 2020.
(NZ) Limited (“GNZ”) and the address of its registered office is The interim financial statements have been prepared on the
Level 2, 18 Viaduct Harbour Avenue, Auckland. historical cost basis except for assets and liabilities stated at fair
The interim financial statements presented are consolidated value as disclosed.
financial statements for Goodman Property Trust and its The interim financial statements are in New Zealand dollars, the
subsidiaries (the “Group”). Group’s functional currency, unless otherwise stated.
GMT is listed on the New Zealand Stock Exchange (“NZX”), is an
Basis of consolidation
FMC reporting entity for the purposes of the Financial Markets
Conduct Act 2013 (“FMCA”) and the Financial Reporting Act 2013 The financial statements have eliminated in full all intercompany
and is an Equity Security for the purposes of the NZX Main Board transactions, intercompany balances and gains or losses on
Listing Rules. transactions between controlled entities.
The Group’s principal activity is to invest in real estate in New accounting standards now adopted
New Zealand.
There have been no new accounting standards that are applicable
The interim financial statements for the six months ended to these interim financial statements.
30 September 2020 are unaudited. Comparative balances for
30 September 2019 are unaudited, whilst comparative balances COVID-19 global pandemic
as at 31 March 2020 were audited.
During the six months ended 30 September 2020, New Zealand
has been subject to two separate restriction periods associated
Basis of preparation and measurement
with the COVID-19 global pandemic (https://covid19.govt.nz/
The interim financial statements have been prepared in accordance covid-19/alert-system/). The most significant impact to the Group
with New Zealand Generally Accepted Accounting Practice of the COVID-19 global pandemic is to the value of its investment
(“NZ GAAP”) and comply with International Accounting Standard property, details of which are disclosed in note 1.4.
34 ‘Interim Financial Reporting’ and New Zealand Equivalent to
International Accounting Standard 34 ‘Interim Financial Reporting’. In addition to the impact to investment property valuations,
support has been provided to customers impacted by COVID-19
The interim financial statements of the Group have been prepared in a range of manners; including rent abatements, rent deferrals
in accordance with the requirements of the NZX Main Board Listing and lease restructures.
Rules.
The Group remains mindful of the ongoing impacts of COVID-19
The interim financial statements do not include all of the notes to the New Zealand economy and continues to monitor them
included in the annual financial statements. Accordingly, these notes closely. In particular, the Group’s operations are being managed
should be read in conjunction with the annual financial statements conservatively and prudently in relation to potential impacts on
for the year ended 31 March 2020, prepared in accordance with GMT resulting from COVID-19.
New Zealand Equivalents to International Financial Reporting
Standards (“NZ IFRS”) and International Financial Reporting
Standards (“IFRS”).15
Notes to the Financial Statements Goodman
For the six months ended 30 September 2020 Property Trust
Interim Report
2021
1. Investment property Interim Financial
Statements
of Goodman
Property income is earned from investment property leased to customers. Property Trust
1.1 Property income
6 months 6 months
$ million 30 Sep 20 30 Sep 19
Gross lease receipts 79.9 75.9
Service charge income 10.7 10.1
Straight line rental adjustments 0.9 1.1
Amortisation of capitalised lease incentives (4.2) (3.0)
Property income 87.3 84.1
1.2 Future contracted gross lease receipts
Gross lease receipts that the Trust has contracted to receive in future years are set out below. These leases cannot be cancelled by the
customer.
$ million 30 Sep 20 31 Mar 20
Year 1 163.2 160.8
Year 2 148.3 147.3
Year 3 129.2 126.6
Year 4 108.0 106.6
Year 5 91.7 90.6
Year 6 and later 353.4 357.6
Total future contracted gross lease receipts 993.8 989.516
Goodman Notes to the Financial Statements
Property Trust For the six months ended 30 September 2020
Interim Report
2021
Interim Financial 1. Investment property (continued)
Statements
of Goodman
Property Trust 1.3 Total investment property
This table details the total investment property value.
30 Sep 20 31 Mar 20
Stabilised Stabilised
$ million properties Developments Land Total properties Developments Land Total
Core
Highbrook Business Park, East Tamaki 1,636.4 37.8 50.4 1,724.6 1,527.6 43.4 45.8 1,616.8
Savill Link, Ōtāhuhu 409.6 – 4.1 413.7 361.9 18.4 1.5 381.8
M20 Business Park, Wiri 283.0 20.7 – 303.7 279.1 10.9 – 290.0
The Gate Industry Park, Penrose 250.4 – – 250.4 244.1 – – 244.1
Westney Industry Park, Mangere 195.1 11.2 – 206.3 193.9 2.2 – 196.1
Total core 2,774.5 69.7 54.5 2,898.7 2,606.6 74.9 47.3 2,728.8
Value-add 443.6 – – 443.6 345.2 – – 345.2
Total investment property 3,218.1 69.7 54.5 3,342.3 2,951.8 74.9 47.3 3,074.0
Included within stabilised properties is a gross-up equivalent to lease liabilities of $65.6 million (31 March 2020: $63.3 million).
GMT’s estates are classified as either “core” or “value-add” estates.
Core
Those estates within the portfolio which consist largely of modern, high-quality industrial and logistics properties.
Value-add
Those estates which generally consist of older properties that are likely to have redevelopment potential over the medium to long-term.
Redevelopment of the properties to realise their maximum future value may require a change in use.
Significant transactions
In April 2020, GMT completed the acquisition of a value-add property at 7-8 Monahan Road, Mt Wellington for $13.0 million.
In September 2020, GMT completed the acquisition of value-add properties adjoining Savill Link, Ōtāhuhu for $70.0 million.17
Notes to the Financial Statements Goodman
For the six months ended 30 September 2020 Property Trust
Interim Report
2021
1. Investment property (continued) Interim Financial
Statements
of Goodman
1.4 Valuation of investment property Property Trust
Key judgement
The carrying value of stabilised properties is the fair value of the property as determined by expert independent valuers. The fair values presented are
based on market values, being the estimated amount for which a property could be exchanged on the date of valuation between a willing buyer and a
willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.
Developments completed in the period, or adequately progressed to allow fair value to be reliably determined, have been independently valued at
30 September 2020 and at 30 September 2019. All other developments are held at cost and tested for impairment.
The key valuation inputs used to measure fair value of stabilised properties and developments held at fair value are disclosed below,
along with the weighted average value for each input:
Valuation input value Measurement sensitivity
Increase in Decrease in
Key valuation input Description 30 Sep 20 31 Mar 20 the input the input
Market capitalisation rate The capitalisation rate applied to the market
rental to assess a property’s value. Derived from
similar transactional evidence considering location,
weighted average lease term, customer covenant,
size and quality of the property. Used in the
capitalisation method. 5.2% 5.4% Decrease Increase
Market rental The valuer’s assessment of the annual net market
income per square metre (“psm”) attributable to the
property; includes both leased and vacant areas.
Used in both the capitalisation method and the
DCF method. $134 psm $137 psm Increase Decrease
Discount rate The rate applied to future cashflows; it reflects
transactional evidence from similar types of
property assets. Used in the DCF method. 7.0% 7.1% Decrease Increase
Rental growth rate The rate applied to the market rental over the
10-year cashflow projection. Used in the
DCF method. 2.2% p.a. 2.2% p.a. Increase Decrease
Terminal capitalisation rate The rate used to assess the terminal value of the
property. Used in the DCF method. 5.3% 5.5% Decrease Increase18
Goodman Notes to the Financial Statements
Property Trust For the six months ended 30 September 2020
Interim Report
2021
Interim Financial 1. Investment property (continued)
Statements
of Goodman
Property Trust 1.4 Valuation of investment property (continued)
Land has been independently valued based on recent comparable transactions, resulting in land values ranging between $232 psm
and $1,100 psm for industrial land (31 March 2020: between $298 psm and $1,000 psm) and $1100 psm for office land (31 March 2020:
$1,000 psm).
Impact of COVID-19 global pandemic to the fair value assessment of investment property
COVID-19 was declared a ‘Global Pandemic’ by the World Health Organisation on 12 March 2020. Alert Level 4 restrictions were imposed across
New Zealand from 26 March 2020, with market activity being impacted and the real estate market being effectively frozen until Alert Level 2 was reached
on 14 May 2020.
At 31 March 2020, due to the Alert Level 4 restrictions in place at that time, the fair market value assessments of investment property prepared by
independent valuers were reported on the basis of ‘material valuation uncertainty’, with less certainty and a higher degree of caution attached to the
valuations than would normally be the case. The independent valuers considered the changes in the market and economic outlook created by COVID-19,
which included valuers changing key assumptions in their valuation assessments including a reduction of market rental assumptions, consideration
for rental abatements to support customers impacted by COVID-19, a decrease in rental growth rates and an increase in the market capitalisation rate
applied. All of these items negatively impacted the 31 March 2020 fair market valuation.
At 30 September 2020 the ‘material valuation uncertainty’ for fair market value assessments of investment property no longer applies and the
independent valuations are no longer reported on this basis. Increased levels of certainty are returning to the investment market with improved confidence
in the economic outlook. Greater certainty also exists for the key valuation inputs that impact valuations as detailed on the preceding page.
1.5 Movement in fair value of investment property
The movement in fair value of investment property for the period is summarised below.
6 months 6 months
$ million 30 Sep 20 30 Sep 19
Stabilised properties 129.9 159.9
Developments 7.4 12.4
Land 2.9 0.1
Total movement in fair value of investment property 140.2 172.4
Independent valuers used to assess fair market values at 30 September 2020 are consistent with those used at 31 March 2020.19
Notes to the Financial Statements Goodman
For the six months ended 30 September 2020 Property Trust
Interim Report
2021
2. Borrowings Interim Financial
Statements
of Goodman
2.1 Interest Property Trust
6 months 6 months
$ million 30 Sep 20 30 Sep 19
Interest expense on borrowings (11.0) (13.3)
Interest expense on lease liabilities (1.6) (1.6)
Amortisation of borrowing costs (1.6) (1.3)
Borrowing costs capitalised (1) 3.2 4.7
Total interest cost (11.0) (11.5)
Interest income – 0.3
Net interest cost (11.0) (11.2)
(1)
Borrowing costs are capitalised at the weighted average cost of borrowing of 4.0% (30 September 2019: 5.0%). Borrowing costs of $1.2 million were capitalised
to land (30 September 2019: $2.1 million).
Accounting policies
Interest costs charged on borrowings are recognised as incurred. Costs associated with the establishment of borrowings are capitalised and amortised
over the term of the relevant borrowings.20
Goodman Notes to the Financial Statements
Property Trust For the six months ended 30 September 2020
Interim Report
2021
Interim Financial 2. Borrowings (continued)
Statements
of Goodman
Property Trust 2.2 Borrowings
$ million 30 Sep 20 31 Mar 20
Current
Retail bonds 100.0 100.0
Total current borrowings 100.0 100.0
Non-current
Syndicated bank facility – 25.0
Retail bonds 300.0 300.0
Wholesale bonds 200.0 –
US Private Placement notes 181.4 201.4
Total non-current 681.4 526.4
Unamortised establishment costs of borrowings (3.0) (2.9)
Total non-current borrowings 678.4 523.5
Total borrowings 778.4 623.521
Notes to the Financial Statements Goodman
For the six months ended 30 September 2020 Property Trust
Interim Report
2021
2. Borrowings (continued) Interim Financial
Statements
of Goodman
2.3 Composition of borrowings Property Trust
$ million
Weighted average Facility
remaining drawn / Undrawn
30 Sep 20 Date issued Expiry term (years) Interest rate Amount facility
Syndicated bank facilities – Nov 21 – Nov 23 2.1 Floating – 400.0
Retail bonds – GMB020 Dec 13 Dec 20 0.2 6.20% 100.0 –
Retail bonds – GMB030 Jun 15 Jun 22 1.7 5.00% 100.0 –
Retail bonds – GMB040 May 17 May 24 3.7 4.54% 100.0 –
Retail bonds – GMB050 Mar 18 Sep 23 2.9 4.00% 100.0 –
Wholesale bond Sep 20 Sep 28 7.9 2.26% 50.0 –
Wholesale bond Sep 20 Sep 30 9.9 2.56% 150.0 –
US Private Placement notes Jun 15 Jun 25 4.7 3.46% US$40.0 –
US Private Placement notes Jun 15 Jun 27 6.7 3.56% US$40.0 –
US Private Placement notes Jun 15 Jun 30 9.7 3.71% US$40.0 –
$ million
Weighted average Facility
remaining drawn / Undrawn
31 Mar 20 Date issued Expiry term (years) Interest rate Amount facility
Syndicated bank facilities – Nov 21 – Nov 23 2.5 Floating 25.0 375.0
Retail bonds – GMB020 Dec 13 Dec 20 0.7 6.20% 100.0 –
Retail bonds – GMB030 Jun 15 Jun 22 2.2 5.00% 100.0 –
Retail bonds – GMB040 May 17 May 24 4.2 4.54% 100.0 –
Retail bonds – GMB050 Mar 18 Sep 23 3.4 4.00% 100.0 –
US Private Placement notes Jun 15 Jun 25 5.2 3.46% US$40.0 –
US Private Placement notes Jun 15 Jun 27 7.2 3.56% US$40.0 –
US Private Placement notes Jun 15 Jun 30 10.2 3.71% US$40.0 –
As at 30 September 2020 and 31 March 2020 a $400.0 million syndicated bank facility was provided to the Trust by Commonwealth
Bank of Australia, Westpac New Zealand Limited (each providing $120.0 million), Bank of New Zealand and The Hongkong and Shanghai
Banking Corporation Limited (each providing $80.0 million).22
Goodman Notes to the Financial Statements
Property Trust For the six months ended 30 September 2020
Interim Report
2021
Interim Financial 2. Borrowings (continued)
Statements
of Goodman
Property Trust 2.3 Composition of borrowings (continued)
As at 30 September 2020, GMT’s drawn borrowings had a weighted average remaining term of 5.1 years (31 March 2020: 4.0 years), with
100% being drawn from non-bank sources (31 March 2020: 96%). Calculation of the weighted average remaining term assumes drawn
bank debt utilises the longest dated facilities.
Significant transactions
In September 2020, GMT issued two tranches of wholesale bonds. The first tranche comprised $50.0 million of 8 year bonds maturing in September
2028, paying a fixed interest rate of 2.262%. The second tranche comprised $150.0 million of 10 year bonds maturing in September 2030, paying a fixed
interest rate of 2.559%.
Subsequent event
In November 2020 the syndicated bank facility was amended to extend the November 2021 maturity to November 2024 and alter the participation by bank.
The total facility size remained at $400 million, comprising three facilities expiring in November 2022 ($135.0 million), November 2023 ($130.0 million) and
November 2024 ($135.0 million). The facility is provided by Commonwealth Bank of Australia ($115.0 million), Westpac New Zealand Limited ($115.0 million),
Bank of New Zealand ($90.0 million) and The Hongkong and Shanghai Banking Corporation Limited ($80.0 million).
2.4 Security and covenants
All borrowing facilities are secured on an equal ranking basis over the assets of the wholly owned subsidiaries of Goodman Property Trust.
A loan to value ratio covenant restricts total borrowings incurred by the Group to 50% of the value of the secured property portfolio.
The Group has given a negative pledge to not create or permit any security interest over its assets. The principal financial ratios which
must be met are the ratio of earnings before interest, tax, depreciation and amortisation to interest expense, and the ratio of financial
indebtedness to the value of the property portfolio. Further negative and positive undertakings have been given as to the nature of the
Group’s business.
2.5 Lease liabilities
$ million 30 Sep 20 31 Mar 20
Opening balance 63.3 61.7
Increase in liability as a result of ground rent reviews 2.2 1.6
Lease liability interest expense 1.6 3.1
Ground rent paid (1.6) (3.3)
Amortisation of incentives received 0.1 0.2
Total lease liabilities 65.6 63.323
Notes to the Financial Statements Goodman
For the six months ended 30 September 2020 Property Trust
Interim Report
2021
2. Borrowings (continued) Interim Financial
Statements
of Goodman
2.6 Loan to value ratio calculation Property Trust
The loan to value ratio (“LVR”) is a non-GAAP metric used to measure the strength of GMT’s Balance Sheet. This non-GAAP financial
measure detailed below may not be consistent with its calculation by other similar entities and differs from the LVR covenant as defined
for GMT’s borrowings. The LVR calculation is set out in the table below.
$ million 30 Sep 20 31 Mar 20
Total borrowings 778.4 623.5
US Private Placement notes – foreign exchange hedging impact (20.8) (44.6)
Cash (52.7) (9.0)
Borrowings for LVR calculation 704.9 569.9
Investment property 3,342.3 3,074.0
Lease liabilities (65.6) (63.3)
Assets for LVR calculation 3,276.7 3,010.7
Loan to value ratio % 21.5% 18.9%
3. Earnings per unit and net tangible assets
3.1 Earnings per unit
Earnings per unit measures are calculated as profit or adjusted operating earnings after tax divided by the weighted number of issued
units for the period. Operating earnings is a non-GAAP financial measure included to provide an assessment of the performance of GMT’s
principal operating activities. This non-GAAP financial measure may not be consistent with its calculation by other similar entities.
The calculation of operating earnings before other income / (expenses) and tax is set out in Profit or Loss.
6 months 6 months
$ million 30 Sep 20 30 Sep 19
Operating earnings before other income / (expenses) and tax 56.0 53.7
Income tax on operating earnings (9.6) (9.0)
Operating earnings after tax 46.4 44.724
Goodman Notes to the Financial Statements
Property Trust For the six months ended 30 September 2020
Interim Report
2021
Interim Financial 3. Earnings per unit and net tangible assets (continued)
Statements
of Goodman
Property Trust 3.1 Earnings per unit (continued)
Weighted units
Million 30 Sep 20 30 Sep 19
Weighted units 1,391.2 1,305.2
6 months 6 months
cents per unit 30 Sep 20 30 Sep 19
Operating earnings per unit before tax 4.03 4.11
Operating earnings per unit after tax 3.34 3.42
Basic and diluted earnings per unit after tax 12.67 17.19
3.2 Net tangible assets
Diluted units, comprising issued units plus deferred units not yet issued, are used to calculate net tangible assets per unit.
Diluted units
Million 30 Sep 20 31 Mar 20
Issued units 1,391.2 1,385.8
Deferred units for Manager’s performance fee expected to be reinvested – 5.3
Diluted units 1,391.2 1,391.1
30 Sep 20 31 Mar 20
Net tangible assets ($ million) 2,536.9 2,402.1
Net tangible assets per unit (cents) 182.4 172.725
Notes to the Financial Statements Goodman
For the six months ended 30 September 2020 Property Trust
Interim Report
2021
4. Derivative financial instruments Interim Financial
Statements
of Goodman
Derivative financial instruments are used to manage exposure to interest rate risks and foreign exchange risks arising from GMT’s Property Trust
borrowings.
4.1 Movement in fair value of financial instruments
6 months 6 months
$ million 30 Sep 20 30 Sep 19
Interest rate derivatives (6.8) (3.5)
Cross currency interest rate derivatives relating to US Private Placement notes (23.0) 28.8
Total movement in fair value of derivative financial instruments (29.8) 25.3
Foreign exchange rate movement on US Private Placement notes 20.0 (15.3)
Total movement in fair value of financial instruments (9.8) 10.0
4.2 Derivative financial instruments
$ million 30 Sep 20 31 Mar 20
Cross currency interest rate derivatives
Non-current assets 41.4 64.4
Interest rate derivatives
Non-current assets 10.3 10.7
Current assets 0.5 1.6
Non-current liabilities (13.7) (15.6)
Net derivative financial instruments 38.5 61.1
Key judgement
The fair values of derivative financial instruments are determined from valuations using Level 2 valuation techniques (31 March 2020: Level 2). These are
based on the present value of estimated future cash flows, taking account of the terms and maturity of each contract and the current market interest
rates at reporting date. Fair values also reflect the creditworthiness of the derivative counterparty and GMT at balance date. The valuations were based
on market rates at 30 September 2020 of between 0.31% for the 90-day BKBM and 0.50% for the 10-year swap rate (31 March 2020: 0.49% for the
90-day BKBM and 0.93% for the 10-year swap rate). There were no changes to these valuation techniques during the period.26
Goodman Notes to the Financial Statements
Property Trust For the six months ended 30 September 2020
Interim Report
2021
Interim Financial 5. Tax
Statements
of Goodman
Property Trust 5.1 Tax expense
6 months 6 months
$ million 30 Sep 20 30 Sep 19
Profit before tax 186.4 236.4
Tax at 28% (52.2) (66.2)
Depreciation of investment property 4.6 2.7
Movement in fair value of investment property 39.3 48.3
Disposal of investment property – 0.1
Deductible net expenditure for investment property 1.4 3.3
Derivative financial instruments (2.7) 2.8
Current tax on operating earnings (9.6) (9.0)
Depreciation recovery income for property sold and settled – 0.1
Settlement of derivative financial instruments 2.0 –
Current tax on non-operating earnings 2.0 0.1
Current tax (7.6) (8.9)
Depreciation of investment property (4.6) (2.7)
Reduction of liability in respect of depreciation recovery income 2.8 2.5
Disposal of investment property – 0.7
Deferred expenses (0.4) (0.9)
Derivative financial instruments (0.3) (2.8)
Deferred tax (2.5) (3.2)
Total tax (10.1) (12.1)
Current tax on operating earnings is a non-GAAP measure included to provide an assessment of current tax for GMT’s principal operating
activities. This non-GAAP financial measure may not be consistent with its calculation by other similar entities.27
Notes to the Financial Statements Goodman
For the six months ended 30 September 2020 Property Trust
Interim Report
2021
6. Related party disclosures Interim Financial
Statements
of Goodman
As a Unit Trust, GMT does not have any employees. Consequently, services that the Group requires are provided under arrangements Property Trust
governed by GMT’s Trust Deed or by contractual arrangements. The Trust has related party relationships with the following parties.
Entity Nature of relationship
Goodman (NZ) Limited GNZ Manager of the Trust
Goodman Property Services (NZ) Limited GPSNZ Provider of property management, development management
and related services to the Trust
Goodman Investment Holdings (NZ) Limited GIH Unitholder in GMT
Goodman Limited GL Parent entity of GNZ, GPSNZ & GIH
Goodman Industrial Trust GIT Property co-owner with GMT
6.1 Transactions with related parties
Recorded Capitalised Outstanding
Related 6 months 6 months 6 months 6 months
$ million party 30 Sep 20 30 Sep 19 30 Sep 20 30 Sep 19 30 Sep 20 30 Sep 19
Manager’s base fee GNZ (6.3) (5.6) 0.3 0.4 (1.1) (1.0)
Property management fees (1) GPSNZ (1.5) (1.5) – – (0.3) (0.1)
Leasing fees GPSNZ (0.8) (0.6) – – – (0.1)
Acquisition and disposal fees GPSNZ (0.8) (1.5) 0.8 – (0.7) –
Minor project fees GPSNZ (0.1) (0.2) 0.1 0.2 – –
Development management fees GPSNZ (1.1) (3.4) 1.1 3.4 (0.4) –
Total fees (10.6) (12.8) 2.3 4.0 (2.5) (1.2)
Reimbursement of expenses for services provided GPSNZ (0.6) (0.4) – – (0.1) –
Total reimbursements (0.6) (0.4) – – (0.1) –
Issue of units for Manager’s base fee reinvested GIH – 5.3 – – – –
Issue of units for Manager’s performance fee reinvested GIH 11.4 8.6 – – – –
Issue of units for Placement GIH – 32.4 – – – –
Total issue of units 11.4 46.3 – – – –
Distributions paid GIH (8.8) (9.3) – – – –
Total distributions paid (8.8) (9.3) – – – –
(1)
Of the property management fees charged by GPSNZ, $1.2 million was paid by customers and was not a cost borne by GMT (30 September 2019: $1.3 million).28
Goodman Notes to the Financial Statements
Property Trust For the six months ended 30 September 2020
Interim Report
2021
Interim Financial 6. Related party disclosures (continued)
Statements
of Goodman
Property Trust 6.2 Other related party transactions
Capital transactions
Capital transactions that occur with related parties can only be approved by the independent directors of GNZ, with non-independent
directors excluded from the approval process.
No properties were acquired pursuant to the Co-ownership Agreement between GMT and Goodman Industrial Trust (30 September 2019:
none). This agreement was approved by unitholders at a general meeting held on 23 March 2004.
Key management personnel
Key management personnel are those people with the responsibility and authority for planning, directing and controlling the activities
of an entity. As the Trust does not have any employees or Directors, key management personnel is considered to be the Manager. All
compensation paid to the Manager is disclosed within this note.
At 30 September 2020, Goodman Group, GNZ’s ultimate parent, through its subsidiary Goodman Investment Holdings (NZ) Limited, held
297,975,387 units in GMT out of a total 1,391,227,995 units on issue (31 March 2020: 296,560,508 units out of a total 1,385,791,305 units
on issue).
6.3 Related party capital commitments
$ million Related party 30 Sep 20 31 Mar 20
Development management fees for developments in progress GPSNZ 1.1 2.1
Total related party capital commitments 1.1 2.129
Notes to the Financial Statements Goodman
For the six months ended 30 September 2020 Property Trust
Interim Report
2021
7. Commitments and contingencies Interim Financial
Statements
of Goodman
7.1 Non-related party capital commitments Property Trust
These commitments are amounts payable for contractually agreed services for capital expenditure. For related party capital commitments
refer to note 6.3.
$ million 30 Sep 20 31 Mar 20
Completion of developments 14.9 48.1
Acquisitions – 12.4
Total non-related party capital commitments 14.9 60.5
7.2 Contingent liabilities
GMT has no material contingent liabilities.
8. Financial risk management
In addition to business risk associated with the Group’s principal activity of investing in real estate in New Zealand, the Group is also
exposed to financial risk for the financial instruments that it holds. Financial risk can be classified in the following categories; interest rate
risk, credit risk, liquidity risk and capital management risk.
8.1 Fair value of financial instruments
Except for the retail bonds, wholesale bonds and US Private Placement notes; the carrying values of all balance sheet financial instruments
approximate their estimated fair value. The fair values of retail bonds, wholesale bonds and US Private Placement notes are as follows:
$ million Fair value hierarchy 30 Sep 20 31 Mar 20
Retail bonds Level 1 427.0 414.9
Wholesale bonds Level 2 201.1 –
US Private Placement Notes Level 2 US$127.7 US$127.9
9. Operating segments
The Trust’s activities are reported to the Board as a single operating segment; therefore, these financial statements are presented in a
consistent manner to that reporting.30
Goodman Independent auditor’s review report
Property Trust To the unitholders of Goodman Property Trust
Interim Report
Report on the interim financial statements
2021
Interim Financial Our conclusion Auditor’s responsibility for the review
Statements
We have reviewed the interim financial statements of Goodman Property of the interim financial statements
of Goodman
Property Trust Trust (the Trust) and its controlled entities (together, the Group), Our responsibility is to express a conclusion on the interim financial
which comprise the balance sheet as at 30 September 2020, and the statements based on our review. NZ SRE 2410 (Revised) requires us to
statement of profit or loss, the statement of changes in equity and the conclude whether anything has come to our attention that causes us
statement of cash flows for the six month period ended on that date, and to believe that the interim financial statements, taken as a whole, are
significant accounting policies and other explanatory information. not prepared in all material respects, in accordance with IAS 34 and
NZ IAS 34. A review of interim financial statements in accordance with
Based on our review, nothing has come to our attention that causes us NZ SRE 2410 (Revised) is a limited assurance engagement. We perform
to believe that the accompanying interim financial statements of the procedures, primarily consisting of making enquiries, primarily of persons
Group do not present fairly, in all material respects, the financial position responsible for financial and accounting matters, and applying analytical
of the Group as at 30 September 2020, and its financial performance and other review procedures.
and cash flows for the six month period then ended, in accordance
with International Accounting Standard 34 Interim Financial Reporting The procedures performed in a review are substantially less than those
(IAS 34) and New Zealand Equivalent to International Accounting performed in an audit conducted in accordance with International
Standard 34 Interim Financial Reporting (NZ IAS 34). Standards on Auditing and International Standards on Auditing
(New Zealand) and consequently does not enable us to obtain assurance
Basis for conclusion that we might identify in an audit. Accordingly, we do not express an
We conducted our review in accordance with the New Zealand Standard audit opinion on these interim financial statements.
on Review Engagements 2410 (Revised) Review of Financial Statements
Performed by the Independent Auditor of the Entity (NZ SRE 2410 Who we report to
(Revised)). Our responsibilities are further described in the Auditor’s This report is made solely to the Trust’s unitholders, as a body. Our
responsibilities for the review of the interim financial statements section review work has been undertaken so that we might state to the Trust’s
of our report. unitholders those matters which we are required to state to them in our
review report and for no other purpose. To the fullest extent permitted by
We are independent of the Group in accordance with the relevant ethical law, we do not accept or assume responsibility to anyone other than the
requirements in New Zealand relating to the audit of the annual financial Trust’s unitholders, as a body, for our review procedures, for this report,
statements, and we have fulfilled our other ethical responsibilities in or for the conclusion we have formed.
accordance with these ethical requirements. In addition to our role as
auditor, our firm carries out other services for the Group in the areas The engagement partner on the review resulting in this independent
of other related assurance services relating to the performance fee auditor’s review report is Richard Day.
calculation, agreed upon procedures relating to financial covenants of
the bank facilities and reporting to the supervisor of GMT Bond Issuer
Limited. The provision of these other services has not impaired our For and on behalf of:
independence.
Manager’s responsibility for the interim financial statements
The Manager (Goodman (NZ) Limited) of the Trust is responsible on
behalf of the Trust for the preparation and fair presentation of these
interim financial statements in accordance with IAS 34 and NZ IAS 34
and for such internal control as the Manager determines is necessary
to enable the preparation and fair presentation of interim financial
statements that are free from material misstatement, whether due to Chartered Accountants
fraud or error. 20 November 2020 Auckland31
GMT Bond
Issuer Limited
Interim Report
2021
Interim Financial
Statements
For the six months ended 30 September 2020 of GMT Bond
Issuer Limited
The Board of GMT Bond Issuer Limited, authorised these
financial statements for issue on 20 November 2020.
For and on behalf of the Board:
Keith Smith Peter Simmonds
Chairman Chairman, Audit Committee
Contents
Profit or loss 32
Balance sheet 33
Cash flows 34
Changes in equity 34
General information 35
Notes to the financial statements:
1. Borrowings 36
2. Advances to related parties 36
3. Commitments and contingencies 36
4. Financial risk management 36
5. Equity 37
The Crossing,
Independent auditor’s review report 38 Highbrook
Business Park32
GMT Bond Profit or loss
Issuer Limited For the six months ended 30 September 2020
Interim Report
2021
Interim Financial 6 months 6 months
Statements $ million 30 Sep 20 30 Sep 19
of GMT Bond
Issuer Limited Interest income 10.2 9.9
Interest cost (10.2) (9.9)
Profit before tax – –
Tax – –
Profit after tax attributable to shareholder – –
There are no items of other comprehensive income, therefore profit after tax attributable to shareholder equals total comprehensive income
attributable to shareholder.33
Balance sheet GMT Bond
As at 30 September 2020 Issuer Limited
Interim Report
2021
$ million Note 30 Sep 20 31 Mar 20 Interim Financial
Statements
Non-current assets of GMT Bond
Issuer Limited
Advances to related parties 2 500.0 300.0
Current assets
Advances to related parties 2 100.0 100.0
Interest receivable from related parties 5.3 5.0
Cash 0.1 0.2
Total assets 605.4 405.2
Non-current liabilities
Borrowings 1 500.0 300.0
Current liabilities
Borrowings 1 100.0 100.0
Interest payable on bonds 5.4 5.2
Total liabilities 605.4 405.2
Net assets – –
Equity
Contributed equity 5 – –
Retained earnings – –
Total equity – –You can also read
